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April 8, 2002 <br />State of Colorado <br />Division of Minerals and Geology <br />11313 Sherman Street RECEIVED <br />Room 215 <br />Denver, Colorado 80203-2273 APR 1 1 2002 <br />Attention: Harry Ranney, Reclamation Specialist <br />Givisian of Minerals and Geology <br />Re: First Quarter 2002 Surface Subsidence Inspection <br />First Quarter 2002 Huntington Ditch Inspection <br />Dear Harry: <br />Section 1 Right beneath the Crawford property was pillared in August/September 2000. <br />Section 2 Right beneath the Crawford property was pillared in July/August 2001. An <br />inspection of these areas was conducted on November 10, 2001. No subsidence features <br />were identified during this inspection with the possible exception of 2 depressions <br />measuring about 20' x 20' x 6-8" deep. Marc Crawford pointed them out but was unsure if <br />they were there prior to mining operations in this area. These areas will be monitored <br />regularly and the landowner will watch them as well. Section 3 Right beneath the Crawford <br />property was pillared in November/December200l. Muddy wnditions have prevented <br />inspection of this and other areas during 1~` quarter, 2002. Inspections will resume during <br />the tad quarter of 2002. <br />Mining has been completed beneath the Dunn/Ute Mountain Ute Tribe Lease. OSM has <br />been checking, measuring, photographing and mapping these cracks on a quarterly basis. <br />These cracks look much like the cracks which are not under OSM jurisdiction. The most <br />recent OSM inspection revealed that the cracks repaired by NKC are still in good shape <br />and the other cracks are healing nicely. OSM is now willing to release the bond. <br />The other areas where pillars have been extracted are Sections No. 4 West, 7 South, 6 <br />South and 5 SouthJl Left. The 7 South and 6 South area exhibits normal subsidence <br />tension cracks extending north from a point about 300 feet south of the Huntington Ditch. <br />This area of the ditch has been replaced with a buried pipeline. Some cracks appear to <br />have crossed the pipeline with no apparent consequences. The landowner is monitoring the <br />situation closely. <br />Call if you have an questions. <br />Sincerely, <br />Tom Bird <br />Planning & Engineering <br />National King Coal, LLC <br />